European stocks advanced amid investor optimism that Greece and its creditors can work out a bailout deal and keep the Mediterranean nation in the euro area.
The Stoxx Europe 600 Index rose 1.5 percent to 387.07 at the close of trading. It earlier climbed as much as 2.2 percent after Greek Prime Minister Alexis Tsipras signaled he’s prepared to compromise on the starting point for talks. Shares trimmed gains after he reiterated his call for voters to reject austerity measures in Sunday’s referendum.
Greece has already missed a $ 1.7-billion payment to the International Monetary Fund, after previous proposals to creditors were rebuffed.
Three days of capital controls, rationing pensions and the expiry of its bailout pushed the Greek government to say it’s willing to accept creditors’ latest offer as a basis for compromise. Sunday’s referendum remains a stumbling block, along with disagreements over pensions, spending and taxes. Tsipras called for voters to reject austerity measures to help strengthen the government’s negotiating position.
Source : Bloomberg
U.S. stocks rose, rebounding from two days of losses, as Coca-Cola Co. rallied on better-than-forecast earnings and as speculation grew that Greece will reach a compromise with its creditors.
Coke gained 2.8 percent as profit benefited from cost-cutting efforts and a shift toward higher-priced drinks. General Motors Co. rose 2.6 percent as a member of President Barack Obamaâ€™s team that restructured GM intends to propose an $ 8 billion stock buyback.
The Standard & Poorâ€™s 500 Index climbed 0.5 percent to 2,056.09 at 9:32 a.m. in New York.
Futures earlier extended gains after speculation grew that Greece will reach an agreement at a Feb. 11 emergency meeting of euro-area finance ministers in Brussels.
Greek Finance Minister Yanis Varoufakis told lawmakers on Monday the country will implement about 70 percent of reforms already included in the current bailout accord. He is also seeking support for a bridge funding plan.
U.S. stocks fell on Monday amid concern that Greeceâ€™s rejection of the nationâ€™s bailout terms could increase turmoil in Europe. The S&P 500 rose 3 percent last week, the most in seven weeks, as oil prices rebounded. The benchmark measure has climbed to within 1.5 percent of a record reached Dec. 29 on three occasions this year, before failing to hold gains.